Draft Law of Ukraine

"On Providing First Employment for Young People"

This draft defines tools to encourage employers and secure state guarantees as to providing first employment for young citizens in accordance with their speciality qualifications.

According to the regulations of this draft state employment service will search for a relevant employment and will facilitate employment of young people by way of giving subsidies to employers for the purpose of providing fist employment for young people.

Subsidy will be granted to an employer if he meets the following requirements:

• first employment is to be provided to young people who have received relevant speciality qualifications;
• first employment is to be provided for the term not less than two years;
• correspondence of a job provided to a hired worker’s speciality qualifications;
• hired worker shall have no work experience relevant to the obtained specialty qualifications.

Compulsory condition for giving subsidy is employment of young people per assignments issued by the state employment service.

Subsidy is granted in the amount of actual employee’s wage costs but not higher than the average wage in the relevant sector of national economy per preceding month.

For the period of two years, beginning from the moment the decision on giving subsidy is made, the recipient thereof is prohibited to cancel labor agreement concluded with the employee because of staff-redundancy, to reduce wage of the employee hired on the subsidy conditions.

Subsidy is given for the term of one year from the moment the subsidy recipient applies for it.

This draft determines the procedure for giving and terminating subsidy.

It is stipulated that if a natural person or a legal entity notifies of violation of subsidy conditions, information stated by a subsidy recipient shall be verified in accordance with the procedure determined by the central body of executive power on labor and social policy.

This draft law envisages corresponding amendments to the Laws of Ukraine "On Compulsory State Insurance against Unemployment" and "On Employment of Population".